Vonovia SE: Vonovia Makes a Successful Start to the 2019 Fiscal Year With Solid Overall Development (news with additional features)
DGAP-News: Vonovia SE / Key word(s): Quarter Results
Results as of March 31, 2019
- Vonovia is socially responsible.
- Portfolio investments expanded: Maintenance and modernization increased significantly compared to the first quarter of 2018
- Significant increase in investments in new construction to EUR 54.1 million compared to the prior-year quarter (Q1 2018: EUR 7.2 million).
- Analysis shows that ancillary expenses at Vonovia in Germany have been at a consistently good level for years; Vonovia is below the nationwide operating cost survey.
- Average rent for Vonovia properties is EUR 6.56 per square meter in Germany.
Bochum, Germany, May 7, 2019 - Vonovia SE ("Vonovia") is making a successful start to 2019. All relevant key figures were improved in the first three months. Vonovia plays a central role in society, which is currently discussing the housing shortage, demographic development, migration and climate protection.
In the first three months of 2019, Vonovia increased its Group FFO (operating result after interest and taxes) to EUR 303.6 million (Q1 2018: EUR 253.0 million). This development is due largely to the acquisition of Victoria Park in Sweden and BUWOG in Austria.
Surpluses in Rental Income in Germany Are Completely Reinvested in the German Portfolio
The repeatedly expressed statement that 39 cents out of every euro in rental income flows to shareholders is inaccurate and fails to consider that Vonovia operates in several business areas in Germany besides the rental business. The following apply to the rental business in Germany: Rental income consists of EUR 1.68 billion, plus earnings from housing-related services of around EUR 120 million. Of the total amount, which comes to EUR 1.8 billion, around EUR 230 million is expended on HR and material costs. An additional amount of around EUR 370 million is expended on maintenance, which means Vonovia bears these costs in full. An additional sum of around EUR 260 million is spent on interest and taxes. Around EUR 840 million flows as investments back into the buildings - EUR 90 million flows into new construction and so is invested in providing more homes. Thus, all surpluses from rental income in Germany are reinvested in the portfolio in Germany.
Vonovia also has additional income from sales and development and from Austria and Sweden of around EUR 1.56 billion. There is a surplus of around EUR 1 billion after deducting the relevant costs, interest and taxes, which come to around EUR 550 million. In 2018, Vonovia paid out a cash dividend of EUR 380 million; the rest remained in the company.
The dividend yield amounts to about 3.5 % on average.
"With a market share of less than 2 % of the German housing market, we cannot solve the tense situation of people looking for housing by ourselves," says Rolf Buch. "We need constructive social dialogue and a joint effort. Extraordinary investments are required in new construction, more senior-friendly housing and - very importantly - more climate protection; according to estimates, up to EUR 800 billion will need to be invested nationwide by 2030. The private residential real estate companies are particularly in demand because of their investment power. We definitely need the capital of investors and the performance of large companies - independent of their ownership structures."
Around 70 % of Vonovia SE's German portfolio dates from 1945 to 1980. Another 15 % are even older. Energy-efficiency measures and improvements in living standards will therefore continue to be an important task in bringing the existing portfolio up to date.
The Group's training rate recently came to 4.9 %. This rate means that Vonovia remains among the top training companies among the DAX 30 companies. Of the trainees, 6.5 % have refugee backgrounds. Integration is important not only to us as an employer, but also as a rental company: During the past two years, the company rented about 10 % of its available apartments to people from Syria, Afghanistan and Iraq.
Ancillary Expenses at Vonovia Under the National Operating Cost Survey
In 2016, Vonovia calculated an average of EUR 2.61/m² per month in ancillary expenses, while in 2017 it was EUR 2.55 EUR/m² per month. The comparison is based on the 14 ancillary expense items that are listed in the ancillary expenses survey. An analysis of individual ancillary expense items also shows that their development is subject to numerous factors that cannot be influenced by a landlord. More than 40 % of ancillary expenses depend on consumption, particularly of heat and water.
In addition, there are large regional differences in government levies, including street cleaning and waste disposal.
Positive Outlook for 2019
Interim Statement for the First Quarter of 2019:
Further information can be found in the Press Section.
May 16, 2019 Annual General Meeting
* Based on the shares carrying dividend rights on the reporting date in question: Mar. 31, 2018: 485,100,826, Mar. 31, 2019, and Dec. 31, 2018: 518,077,934.
The company, which is based in Bochum, has been listed on the stock exchange since 2013 and on the DAX 30 since September 2015. Vonovia SE is also listed on the international indices STOXX Europe 600, MSCI Germany, GPR 250 and EPRA/NAREIT Europe. Vonovia has a workforce of approximately 10,000 employees.
This press release has been issued by Vonovia SE and/or its subsidiaries solely for information purposes. This press release may contain statements, assumptions, opinions and predictions about the anticipated future development of Vonovia ("forward-looking statements") that reproduce various assumptions regarding, e.g., results derived from Vonovia's current business or from publicly available sources that have not been subject to an independent audit or in-depth evaluation by Vonovia and that may turn out to be incorrect at a later stage. All forward-looking statements express current expectations based on the current business plan and various other assumptions and therefore come with risks and uncertainties that are not insignificant. All forward-looking statements should not therefore be taken as a guarantee for future performance or results and, furthermore, do not necessarily constitute exact indicators that the forecast results will be achieved. All forward-looking statements relate solely to the day on which this press release was issued to its recipients. It is the responsibility of the recipients of this press release to conduct a more detailed analysis of the validity of forward-looking statements and the underlying assumptions. Vonovia accepts no responsibility for any direct or indirect damages or losses or subsequent damages or losses, as well as penalties that the recipients may incur by using the press release, its contents and, in particular, all forward-looking statements or in any other way, as far as this is legally permissible. Vonovia does not provide any guarantees or assurances (either explicitly or implicitly) in respect of the information contained in this press release. Vonovia is not obliged to update or correct the information, forward-looking statements or conclusions drawn in this press release or to include subsequent events or circumstances or to report inaccuracies that become known after the date of this press release.
Document title: Vonovia Makes a Successful Start to the 2019 Fiscal Year With Solid Overall Development
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